In the Age of Specialty Everything, many private label brands are now winning taste tests – to the point that generic food items are said to taste as good as or better than national brands. How do marketers respond when a major consumer publication like Consumer Reports magazine says that brands those marketers oversee might not perform/taste as well as those from generic issuers?
Just when Americans seemed sold on big-box grocery stores as the answer to meeting or beating the monthly food budget, along come several national chains that want to sell people on an idea once thought extinct: Buying household groceries from the friendly neighborhood market. Is a significant change afoot? And will product manufacturers need to change their go-to-market strategies?
There’s $565 billion worth of sales in the grocery business every year, according to a report from CNBC. Problem is, profit margins have always been historically low. So why would the likes of Amazon and Wal-Mart rush headlong to get into the food business? Does either company believe that establishing a beachhead on Aisle 2 will be worth the effort? Not to mention the cost?